Is Clinton an internet stock ?
During the last elections, a huge squeeze was orchestrated against Republicans that had sold CLINT short prematurely. As a result, CLINT is trading at an all time high.
While analysts in the press, through their bullish reports, would like you to beleive that CLINT is not overpriced, and is in fact on its way to further highs, the fundamentals are, IMO, going from bad to worse.
Tacitly admitting that there were some problems with CLINT's valuation, the bulls and analysts had launched an onslaught on Starr Co. the audit company that had found some accounting irregularities, and declared that their valuations methods were simply not appropiate.
Yet, Starr Co. seems to come away clean from these accusations, and now the SEC is to pursue its investigation into wether CLINT is a fraud.
The SEC is drawing much more attention than Starr Co., and cannot be prevented from having access to the full records and financials of CLINT. Also Mr. Hyde, SEC chairman, by is actions, seems to think that CLINT is indeed a fraud, and refuses to shut down the investigation until the facts are clearly established.
Seeing some eternal Republican bears turning bullish on the stock, I think a top may have been reached, and I'm tempted to buy some far out of the money January put on CLINT. |
